New Zealand Law
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When you bought the alarm system, that this come with some sort of contract with the security monitoring company?
That is an interesting issue. I am inclined to think that this may be an issue under the Commerce Act as a restrictive trade practice, because it prevents you from trading with the security monitoring company of your choice. These issues are investigated by the Commerce Commission, who are unfortunately not always able to deal with these matters quickly because of the volume of their work. The place to make a complaint is at this link http://www.comcom.govt.nz/the-commission/making-a-complaint/online-complaint-form/
Perhaps the next step is to suggest to the security monitoring company that you will take this matter to the Commerce Commission but that a sensible fee would be an easier response for them